What Is Inventory? Pregnant Definition Examples

Meaning of Inventory

Let's notice out, What is inventory?

1. Inventory is the stock of goods held for doing business.
2. It is commonly required to bear on the describe of piece of job organization together with its allied activities.

Important points roofing the pregnant of inventory is depicted below.

The pregnant of inventory mainly revolves some next 4 items:

1. Raw-materials required for production process.
2. Work inward progress (WIP). For example, semi-finished goods.
3. Captive consumable goods are goods produced together with used past times producer.
4. Finished goods which are available for sale.

Inventory besides includes investment made inward raw-materials together with their parts inward accordance amongst the inventory policy established past times the management.

Definition of Inventory

Inventory tin hold out defined inward many ways w.r.t dissimilar prespectives. Following selected statements volition assistance yous to acquire a wide agreement of its concept.

In general, the uncomplicated definition of inventory tin hold out stated every bit follows.

“Inventory agency the stock of goods available or held for sale inward the ordinary course of written report of business.”

In a describe of piece of job organization sense, the inventory tin hold out defined every bit under.

“Inventory includes raw-materials stored inward a warehouse, work-in-progress inward production, together with finished goods available for sale.”

From an academic or learning perspective,

“Inventory is that stock of goods, which convey a demand together with furnish inward the market together with tin hold out easily realized inward cash.”

Examples of Inventory

The examples of inventory of some major industries are depicted below.

Following are examples of inventory seen inward 4 major industries:

1. Automobile industry's inventory comprises of the full release of cars together with their spare parts.
2. Consumable goods' inventory contains packets of wheat flour, cans of edible oil, etc.
3. Electronic goods' inventory includes televisions, computers, mobile phones, air-conditioners, refrigerators, etc.
4. Construction industry's inventory mainly covers residential flats together with commercial shops.